Frontdoor Reports Q2 25 Revenue Growth Driven by Acquisition, Expects Continued Growth

Frontdoor Inc. reported Q2 25 revenue of $617m, a 13.8% y/y growth, driven by the integration of the 2-10 Home Buyers Warranty acquisition and strong growth in core and non-warranty programs. EBITDA rose 29.2% to $186m, and net income increased 20.7% to $111m. The company launched a Labor Day sale offering 50% off its popular home warranty plans. Analysts expect revenue CAGR of 8.3% over FY 24-27, reaching $2.3bn in FY 27.

Frontdoor Inc. (FTDR) reported robust financial results for the second quarter of 2025, showcasing significant year-over-year growth. The company's revenue reached $617 million, marking a 13.8% increase from the same period last year. This growth was driven by the integration of the 2-10 Home Buyers Warranty acquisition and strong performance in core and non-warranty programs [1].

The company's earnings before interest, taxes, depreciation, and amortization (EBITDA) rose by 29.2% to $186 million, while net income increased by 20.7% to $111 million. Frontdoor's Labor Day sale, offering 50% off its popular home warranty plans, likely contributed to these strong results [1].

Analysts remain optimistic about Frontdoor's future prospects. They expect the company to achieve a compound annual growth rate (CAGR) of 8.3% in revenue over the fiscal years 2024 to 2027, with revenue reaching $2.3 billion by the end of FY 2027 [1]. The positive earnings revisions and analyst optimism have led to a strong Zacks Rank #1 (Strong Buy) rating for Frontdoor, indicating that the stock is well-positioned for continued growth [1].

Frontdoor's strong earnings growth and positive analyst revisions suggest that the company is well on its way to achieving sustainable profitability. The company's ability to integrate new acquisitions and maintain strong growth in its core programs is a positive sign for long-term investors. However, it is essential to monitor the company's ability to maintain its growth trajectory and manage any potential risks associated with the integration of new acquisitions [2].

References:
[1] https://www.nasdaq.com/articles/why-frontdoor-ftdr-might-be-well-poised-surge
[2] https://finance.yahoo.com/news/ran-stock-scan-earnings-growth-123058300.html